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Fixed Assets Valuation - How should Fixed Assets be Valued


At historical cost or replacement cost. Historical cost gives only the cost at which it was purchased whereas replacement cost gives us the cost that will be incurred to actually purchase the machine in the present year. According to me fixed assets should be valued at replacement cost since it represents the correct value of the asset. What is your opinion?

 

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Fixed Assets Valuation - How to Value Fixed Assets75

Fixed Assets Valuation - How to Value Fixed Assets

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